Tag Archive for: falling interest

Swapping Equity for Debt

When I was working out at the gym a few weeks ago, TJ Rodgers was on the Mad Money show on CNBC (I recall this being Friday January 25, but I cannot find video of this show on the Internet). For those who haven’t seen the show, the host, Jim Cramer, affects a loud and […]

Falling Interest Rates Destroy Capital

I have written other pieces on the topic of fractional reserve banking here and here duration mismatch, which is when someone borrows short-term money to lend long-term and how falling interest rates actually encourages duration mismatch (http://keithweiner.posterous.com/falling-interest-rates-and-duration-mismatch). Falling interest rates are a feature of our current monetary regime, so central that any look at a […]

Falling Interest Rates and Duration Mismatch

Since 1982, US Treasurys have been in a bull market. This is Exhibit A: the yield on the 10-year Treasury bond (the yield and the market price of the bond are inversely related, like a teeter-totter). This statement should not be controversial. But outside Austrian circles, most people don’t understand that this structural decline is […]